Arizona Revised Statutes § 14-7413 Principal Receipts

14-7413. Principal receipts

A trustee shall allocate to principal:

1. To the extent not allocated to income under this article, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest or a payer under a contract naming the trust or its trustee as beneficiary.

2. Money or other property received from the sale, exchange, liquidation or change in form of a principal asset, including realized profit, subject to this article.

3. Amounts recovered from third parties to reimburse the trust because of disbursements described in section 14-7426, subsection A, paragraph 7 or for other reasons to the extent not based on the loss of income.

4. Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income.

5. Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income.

6. Other receipts as provided in sections 14-7417 through 14-7424.

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Last modified: October 13, 2016